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Half speed of the maximum allowed capacity is the new full speed...lol
That's right haven't even filed the application yet....no hurry they don't need the money.
Again, he never said GROSS PROFIT MARGINS why is that? Maybe he wanted a JUICY "Impact"
Your Juicy Tidbits are not even close to reality.
(1) 2 Processors running at only half speed for god knows how many hours a day.
(2) Working with the DEC "to file" they haven't even filed the application yet.
(3)He was very careful to never mention "Gross Profit Margins" what he carefully said was "Gross Profit Impact" shortly after he quickly mentions "our total gross is significant we're getting almost 90% of the market rate of that fuel" So much for a premium.
(4) According to the CC they have only processed 1,250,000 million pounds of fuel...not 1.4
Just keeping it real.
Here's a copy of the CC for you.
11minutes into the mp3 it starts. http://ifile.it/u0teo2h/JBIICC.mp3
JBII CC -- 10 TDIBITS OF INTEREST FROM MY NOTES:
(1) 2 P2O processors now running at maximum allowed hourly capacity -- now assembling processor 3.
(2) Solid Waste Permit -- working with the DEC and expect news in the near future that will allow them to double their capacity.
(3) 90% gross profit margin for fuel oil #6 and fuel oil #2 from P2O, 50% for naphtha.
(4) Have processed over 1.4 million pounds of plastic.
(5) "In our financials, we will specifically break out the gasoline and any third party fuel blended with ours. With fuel oil #2 and #6, it is 100% P2O fuel."
(6) Their multiple customers are repeat order customers. As an example, they signed a purchase order with a Fortune 100 company for 500,000 liters and delivered 85,000 liters so far and "are getting out another tanker right away"
(7) Three "extremely high net worth individuals" have invested $1 million or more each in the last 11 months.
(8) Expect details on financing, possibly project-based debt financing, in the annual report due March 15.
(9) NYSE: RKT partnership continues to move forward and are expecting to issue a "joint announcement" in regards to timelines and expect multiple processors deployed to NYSE: RKT over the next 12 months.
(10) JBII's procesor #2 was designed with the data from #1 in mind. Processor #2's design is replicable, manageable, proven, and deployable.
500k litres not gallons, which equals about 132,000 gallons.
That is right.. Lets not forget about our new fortune 100 friend who has a purchase order for 500,000 gallons.
We absolutely can say for sure what’s currently allowed.
According to the DEC SWP Permit they’re currently allowed to store 400,000 lbs. of waste plastic in the storage building.
That’s plenty of "Plastic Storage" to run the processors at the new maximum allowed capacity.
They’re also currently allowed to run at 4,000lbs per hour per processor.
So we know the storage of waste plastic isn’t the issue.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7993976
The only thing we don’t know is the whole story on why they’re not currently running at full allowed capacity.
Permit Condition #5 of the solid waste permit an approved plan prepared by Synder Engineering in regards to "Plastic Storage"
www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7993976
Since we don't know the details of that plan as they were submitted separately as "Appendix 3-F" -- nobody can say for sure what is or isn't allowed currently based on the solid waste permit.
Other than this discussion is probably a solid waste. :)
Instead of taking stabs at me for asking legitimate questions, why dont' you answer why he's not currently taking advantage of 4,000 lbs. per hour now - when there's no logical reason to wait?
There's a quarterly limit of 5850 tons ( http://sec.gov/Archives/edgar/data/1381105/000121390011003255/f8k061411ex99i_jbi.htm ). Using a 13 week quarter and a 5 day work week, 75 tons/day = 4875 tons/quarter. Using a 6 day work week, 75tons/day = 5850 tons/quarter.
Instead he chooses to run 2,000 lbs per hour for a unspecified time. Is he running it 1 hour per day or 24, who knows?
Even "if" he's operating at 24 hours per day, at 2 tons per hour for a total of 48 tons processed per day, means he's leaving 27 tons on the table.....why would a man with a IQ of 170, leave 27 tons of money on the table - when he's finally given the green light to pass go and collect?
So why wouldn't John want to finally maximize output, does JBI have all the money they need?
Negative and dead wrong across the board.
Maybe you can post the link where I said three would not fit...good luck with that.
In the mean time how about reading exactly what I said.
Re: Rawnoc post# 118162
Post # of 168317
We've already been over this - I said the center of the warehouse last night.
The link below shows the warehouse where the processors follow the side wall length wise, they clearly exceed the center width wise evidenced by the attached photo by looking at the center of the rafters.
So in this 10,500sq' warehouse they can fit three processor in. leaving a minor lane in the center for a possible conveyor and forklifts will only leave a limited space for plastic storage.
Some things just don't add up, I believe the market gets this and is the reason for the sell off yesterday.
So there's a quarterly limit of 5850 tons ( http://sec.gov/Archives/edgar/data/1381105/000121390011003255/f8k061411ex99i_jbi.htm ). Using a 13 week quarter and a 5 day work week, 75 tons/day = 4875 tons/quarter. Using a 6 day work week, 75tons/day = 5850 tons/quarter.
Instead he chooses to run 2,000 lbs per hour for a unspecified time. Is he running it 1 hour per day or 24, who knows?
Even "if" he's operating at 24 hours per day, at 2 tons per hour for a total of 48 tons processed per day, means he's leaving 27 tons on the table...with an IQ of 170?
Why wouldn't John want to finally maximize output?
Things that make you go Hmmmm
They can receive the 120 tons per day now before the 360 waste permit is modified, by receiving said plastic at the recycling center and trucking it over as needed.
They already have the approval to run all three at the new limits, so need to wait for the 360 permit modification to run all three at 6 tons per hour - if all three are indeed ready.
On February 9, 2012, we received approval from the New York State Department of Environmental Conservation of an amendment to our air permit which allows us to operate Plastic2Oil® P2O processors at our Niagara Falls, NY facility at an increased rate of 4,000 lbs per hour. This rate is two times the rate at which we were previously authorized to supply feedstock to the P2O processor. The approval of the increased rate of operation now permits us to amend our Part 360 Waste Permit to reflect the storage of similar plastic volumes and is a key component to our plans for long-term growth.
Thanks for adding some of the questions to your list.
Please add the following.
According to the company’s filings, the company entered into a consulting service contract with a shareholder, where the minimum future payment is equal to fifty percent of the operating income generated from the operations of two of the most profitable devices and 10% from all the other devices in marine industries. Would the payment to the unnamed shareholder of a minimum of fifty percent of the operating income be coming from the two most profitable P20 Processors and the other 10% from all other P20 Processors in the marine industry?
Please change my previous question to now read:
The DEC recently increased feed rate to 4,000 lbs. or two tons per hour per processor. This increase would result with a need of approximately 120 tons of free plastic per day, for running three shifts with an hour down time per shift at maximum input feeds. Is the company currently receiving at least 120 tons of free plastic per day, that can be processed to meet this need?
I think it's also fair to add the two other questions you left out, as positive answers could support or increase the share price. John and his council are smart enough to decide how or not to answer.
Please reconsider adding these two questions and leave it to the company to decide how to respond.
Has the company started planning on any succession alternatives, if John is found guilty and barred?
Has the DOJ been in contact with and investigating JBI or anyone affiliated with JBI, as a result of the SEC investigation, or for any other reason?
You have to agree, if John can say that the company isn't being investigated by the DOJ, that the statement would certainly make the shares of the company more attractive.
Thx - Art
Done...thx
Please add these questions to your growing list.
“The XTR Energy agreement will require the Company to purchase third party fuels to blend with its P2O fuel output until it can build out the capacity to meet the full quantities required by the customer.”
What’s the percentage of plastic derived fuel, that’ll be blended with purchased third party fuels for resale to XTR?
How many processors will be needed to meet the full quantities required by XTR, to fully eliminate the need to blend plastic derived fuel with third party fuels?
Has any blended fuel been delivered to XTR to date?
What’s the maximum output of Naphtha per processor?
Will the time to process change, by tuning the processor to produce more Naphtha?
“On February 9, 2012, we received approval from the New York State Department of Environmental Conservation of an amendment to our air permit which allows us to operate Plastic2Oil® P2O processors at our Niagara Falls, NY facility at an increased rate of 4,000 lbs. per hour. This rate is two times the rate at which we were previously authorized to supply feedstock to the P2O processor. The approval of the increased rate of operation now permits us to amend our Part 360 Waste Permit to reflect the storage of similar plastic volumes and is a key component to our plans for long-term growth.”
The DEC recently increased feed rate to 4,000 lbs. or two tons per hour per processor. This increase would result with a need of approximately 120 tons of free plastic needed per day, for running three shifts with an hour down time per shift at maximum input feeds.
Is the company currently receiving at least 120 tons of free plastic that can be processed per day to meet this need?
“One of the Company’s subsidiaries entered into a consulting service contract with a shareholder. The minimum future payment is equal to fifty percent of the operating income generated from the operations of two of the most profitable devices and 10% from all the other devices in marine industries”
Is the minimum future payment of 50% of operating income to an unnamed shareholder, from the two most profitable P20 processors referred to as devices?
Are all other devices in the marine industries, describing P20 processors?
What’s the total current cost of materials, labor and time to build each new processor?
Is the number one processor operating at the full allowed capacity yet, if not when, same question for 2&3?
Will 2&3 need to be tested to satisfy the DEC prior to running commercially?
What is the company’s expected net profit or earnings per share, per processor - on an annual basis, for Niagara Falls plant vs the first Rock Tenn site?
How long before the company expects fuel to be produced from the first RockTenn site?
Is there a profit sharing agreement on the scrap steel from the raggertail, or is all the scrap steel property of JBI?
Can the scrap steel be sold in its expected condition after plastic processing, or will further cleaning be necessary?
What’s the current market price for the type/grade of steel in the raggertail after processing?
How many barrels of fuel are currently in inventory, for each type of fuel that was produced from plastic?
When the company uses “In Spec” in their fuel definitions are they saying that the fuel produced is within the “ASTM” specifications for that particular grade, if not what specification are they referring to?
Has the company started planning on any succession alternatives, if John is found guilty and barred?
Has the DOJ been in contact with/investigating JBI or anyone affiliated with JBI, as a result of the SEC investigation, or for any other reason?
Thanks - Art
Please add these questions to your growing list.
“The XTR Energy agreement will require the Company to purchase third party fuels to blend with its P2O fuel output until it can build out the capacity to meet the full quantities required by the customer.”
What’s the percentage of plastic derived fuel, that’ll be blended with purchased third party fuels for resale to XTR?
How many processors will be needed to meet the full quantities required by XTR, to fully eliminate the need to blend plastic derived fuel with third party fuels?
Has any blended fuel been delivered to XTR to date?
What’s the maximum output of Naphtha per processor?
Will the time to process change, by tuning the processor to produce more Naphtha?
“On February 9, 2012, we received approval from the New York State Department of Environmental Conservation of an amendment to our air permit which allows us to operate Plastic2Oil® P2O processors at our Niagara Falls, NY facility at an increased rate of 4,000 lbs. per hour. This rate is two times the rate at which we were previously authorized to supply feedstock to the P2O processor. The approval of the increased rate of operation now permits us to amend our Part 360 Waste Permit to reflect the storage of similar plastic volumes and is a key component to our plans for long-term growth.”
The DEC recently increased feed rate to 4,000 lbs. or two tons per hour per processor. This increase would result with a need of approximately 120 tons of free plastic needed per day, for running three shifts with an hour down time per shift at maximum input feeds.
Is the company currently receiving at least 120 tons of free plastic that can be processed per day to meet this need?
“One of the Company’s subsidiaries entered into a consulting service contract with a shareholder. The minimum future payment is equal to fifty percent of the operating income generated from the operations of two of the most profitable devices and 10% from all the other devices in marine industries”
Is the minimum future payment of 50% of operating income to an unnamed shareholder, from the two most profitable P20 processors referred to as devices?
Are all other devices in the marine industries, describing P20 processors?
What’s the total current cost of materials, labor and time to build each new processor?
Is the number one processor operating at the full allowed capacity yet, if not when, same question for 2&3?
Will 2&3 need to be tested to satisfy the DEC prior to running commercially?
What is the company’s expected net profit or earnings per share, per processor - on an annual basis, for Niagara Falls plant vs the first Rock Tenn site?
How long before the company expects fuel to be produced from the first RockTenn site?
Is there a profit sharing agreement on the scrap steel from the raggertail, or is all the scrap steel property of JBI?
Can the scrap steel be sold in its expected condition after plastic processing, or will further cleaning be necessary?
What’s the current market price for the type/grade of steel in the raggertail after processing?
How many barrels of fuel are currently in inventory, for each type of fuel that was produced from plastic?
When the company uses “In Spec” in their fuel definitions are they saying that the fuel produced is within the “ASTM” specifications for that particular grade, if not what specification are they referring to?
Has the company started planning on any succession alternatives, if John is found guilty and barred?
Has the DOJ been in contact with/investigating JBI or anyone affiliated with JBI, as a result of the SEC investigation, or for any other reason?
Thanks - Art
Thanks for the invite Royal...that sure is a lot of symbols
Board marked.
Can you name your top five picks and reasons why? I'm always on the hunt for new ideas.
Thanks - Art
On January 18, 2011, the U.S. District Court for Southern New York granted Tecnimed’s request for a preliminary injunction and ordered the Company to stop selling the Vera Temp in the allegedly infringing package and to recall the product in the contested packaging from customers.
On February 11, 2011, after Tecnimed posted a $130,000 preliminary injunction bond with the Court to compensate the Company in the event Tecnimed does not prevail in this action, the Company sent recall notices out to its customers.
The Company also complied with this injunction by changing its retail package to reflect the order of the Court. For the nine months ended September 30, 2011, the Company reversed previously recognized revenues from sales in the allegedly infringing package in the amount of $84,208.
The Company now ships the thermometer to customers in its new, Court-approved package. The Company has incurred approximately $30,500 of direct costs specifically related to the recall, including shipping and repackaging costs. Of this amount, $5,500 was expensed during the second quarter of 2011 and the remainder was expensed as of December 31, 2010.
In addition, the recall caused lost sales which the Company would seek to recover from the preliminary injunction bond should it prevail in the case. The Company has appealed the District Court’s preliminary injunction order to the United States Court of Appeals for the Second Circuit. That appeal has been fully briefed and a decision is expected in the first quarter of 2012.
The Company has acknowledged the outstanding note and interest owed to Tecnimed, yet seeks to offset those amounts by the damages caused by Tecnimed’s breach of the Settlement Agreement.
Tecnimed is seeking additional damages caused by the Company’s use of the allegedly infringing packaging. Based on advice of counsel, the Company does not believe it has significant exposure because Tecnimed had no material amount of sales in the United States at the time. Finally, Tecnimed is alleging it is entitled to recover its attorneys’ fees under the “exceptional case” provisions of the Lanham Act. Based on the advice of counsel, the Company believes that it is unlikely that this case would be deemed an exceptional case.
They’ve already complied with the recall, and have redesigned the packaging. Sounds like the worse is over in regards to Tecnimed.
http://www.sec.gov/Archives/edgar/data/1114605/000114420411066299/v236364_10q.htm
Say what?
The facts are simple.
FACT: Juicy John and Baldwinn knew almost immediately after filing the 10K and well prior to the AGM - that the credits were worthless.
None of your NSS theory's or SEC conspiracy stories is going to change that fact.
More facts:
Fact: They continued sellin the PIPE while lying to everyone of their shareholders before, during and after the AGM regarding the true value of the credits, knowing full well they were worthless and all the financials needed to be restated.
Fact: After ending the PIPE sale on 5/20/10, they then disclosed via 8K on 5/21/10 for the very first time what they knew all along - that the credits were worthless.
I think Baldwin is goin to turn, if he hasn't already. Heck, he's already acknowledged knowing the credits were worthless prior to the AGM. I think Baldwin's going to try and save his own neck by throwing JUICY JOHN under the bus by telling the SEC the truth and nuttin but the truth...should be interesting
Dead wrong.
Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010, Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and audit firms consulted about perceived problems associated with the 10-K filing.
Almost IMMEDIATELY after filing the 10-K he acknowleged knowing they were worthless.
The AGM was on 4/24 and they were still selling the pipe knowing full well the credits were worthless, they didn't come clean till 5/21.
They wouldn't have disclosed in the prospectus, and then kept it a secret from all the other shareholders now would they, as this would be insider information and illegal? Material Information is given out to all shareholders at the same time.
They told the world on 5/21 via 8K, after lying and knowing damn well that they were lying.
Baldwin admitted to knowing prior to the AGM that a restatment would be needed and that the credits were worthless. Yet he and Juicy John didn't disclose this material information as required. Instead they continued selling the PIPE, while giving investors false and misleading information.
In Section 34. Baldwin "acknowledged" that he knew prior to the AGM of the need to restate and that the credits were worthless.
Bordynuik was also aware at the time of the AGM that the media credits were significantly overvalued in JBI’s financials and that the company would have to restate as a result.
This information needed to be disclosed immediately as this information was indeed material. Yet, neither of them came clean till after the AGM as they were still in the middle of the solicitation of the newest PIPE.
Timeline:
March 31st 2010 filed the 10k Almost immediately afterwards Baldwin acknowledges that he is aware the Media Credits are worthless.
Then comes the AGM April 24th 2010, the one in which they failed to disclose the material event they were both aware of.
However, on May 20, 2010, JBI, Inc., (the “Company”) consummated a confidential private placement (the “Private Offering”) with certain accredited investors for the issuance and sale of 488,779 shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) at per share price of $4.00 for aggregate offering proceeds of $1,955,116.
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002141/f8k052010_jbi.htm
Then on May 21st 2010 right after consumating the PIPE offering, they announced what they knew all along that the Media credits were worthless.
In the SEC's own words:
34. Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010, Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and audit firms consulted about perceived problems associated with the 10-K filing.
Baldwin himself acknowledged that by at least this time he became aware that GAAP required the media credits to be booked at cost, rather than the valuation used, and approved by him, for the Form 10-K
By this time Baldwin also reviewed information relating to press articles and other media obtained by JBI that were charged against the media credits and knew that the media credits had
little to no real value.
As a result, Baldwin knew, prior to JBI’s Annual General Meeting (“AGM”) on April 24, 2010, that listing the media credits at $9.997 million was, at the very least, a substantial overvaluation and would have to be restated.
35. Despite this understanding Baldwin made a presentation at JBI’s Annual General Meeting, attended by JBI shareholders, that misrepresented JBI’s financial position. Baldwin failed to inform the shareholders that the media credits were erroneously booked and would have to be written down significantly and potentially in their entirety.
Instead, Baldwin made misrepresentations about the media credits being a current asset at a nearly $10 million valuation that would not be on the balance sheet at the same time the next year because they would need to be expensed.
In making these misrepresentations Baldwin failed to inform the shareholders that he then believed the media credits to be, at a minimum, overvalued by nearly $9 million, and at
worst, completely worthless and needing to be written off entirely.
Baldwin also failed to inform the shareholders that he believed the company most likely would need to restate its financial statements as a result of the overvaluation of the media credits.
36. Bordynuik was present at JBI’s Annual General Meeting and was aware, both before and after, of the representations Baldwin made about the value of the media credits. At the time Bordynuik also was aware that the media credits were significantly overvalued in JBI’s financials and that the company likely would have to restate as a result.
At the time of JBI’s Annual General Meeting, Baldwin and Bordynuik both were aware that JBI was still soliciting
investors for one of the PIPES that ultimately raised approximately $8.4 million during the
period of overstatement.
http://www.sec.gov/litigation/complaints/2012/comp22220.pdf
I keep coming back to the 4000 lbs/hr input in recent PR's.......and an old comment about a ton's worth of plastic turned to fuel leaving the reactor in '5 minutes'
Found it, you Mean this comment right?
"We learned something about our reaction that's very unique that's really cool and a lot of fun, it's a little scary in some cases too because once the reaction starts it takes off. You put a ton in that reactor and it leaves in 5 minutes. So you got to have the backend to be able to cool all that hot gas and condense it down to liquid fairly quickly.
http://video.jbiglobal.com/JBI%20NEW.wmv 1:08:00 to 1:08:30
I think it's fair to assume your statement about plastic being turned into "fuel" in 5 minutes is still completely false on it's face and unsubstantiated.
That just might vaporize the neutral third party theory, or the very least turn it into fuel in 5 minutes..
Dead wrong.
Why don't you post the original Juicy John quote? It said nothing about plastic to "fuel" in five minutes.
Negative, and nothing but pure ridiculous fiction.
The number one piece of evidence can be found in Section 34. Baldwin "acknowledged" that he knew prior to the AGM of the need to restate and that the credits were worthless, yet he with held that material information from the shareholders.
Bordynuik was also aware at the time of the AGM that the media credits were significantly overvalued in JBI’s financials and that the company would have to restate as a result.
This information needed to be disclosed immediately as this information was indeed material. Yet, neither of them came clean till after the AGM as they were still in the middle of the solicitation of the newest PIPE.
Timeline:
March 31st 2010 filed the 10k Almost immediately afterwards Baldwin acknowledges that he is aware the Media Credits are worthless.
Then comes the AGM April 24th 2010, the one in which they failed to disclose the material event they were both aware of.
However, on May 20, 2010, JBI, Inc., (the “Company”) consummated a confidential private placement (the “Private Offering”) with certain accredited investors for the issuance and sale of 488,779 shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) at per share price of $4.00 for aggregate offering proceeds of $1,955,116.
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002141/f8k052010_jbi.htm
con·sum·mate
to complete (an arrangement, agreement, or the like) by a pledge or the signing of a contract: The company consummated its deal to buy a smaller firm.
Then on May 21st 2010 right after consumating the PIPE offering, they announced what they knew all along that the Media credits were worthless.
In the SEC's own words:
34. Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010, Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and audit firms consulted about perceived problems associated with the 10-K filing.
Baldwin himself acknowledged that by at least this time he became aware that GAAP required the media credits to be booked at cost, rather than the valuation used, and approved by him, for the Form 10-K
By this time Baldwin also reviewed information relating to press articles and other media obtained by JBI that were charged against the media credits and knew that the media credits had
little to no real value.
As a result, Baldwin knew, prior to JBI’s Annual General Meeting (“AGM”) on April 24, 2010, that listing the media credits at $9.997 million was, at the very least, a substantial overvaluation and would have to be restated.
35. Despite this understanding Baldwin made a presentation at JBI’s Annual General Meeting, attended by JBI shareholders, that misrepresented JBI’s financial position. Baldwin failed to inform the shareholders that the media credits were erroneously booked and would have to be written down significantly and potentially in their entirety.
Instead, Baldwin made misrepresentations about the media credits being a current asset at a nearly $10 million valuation that would not be on the balance sheet at the same time the next year because they would need to be expensed.
In making these misrepresentations Baldwin failed to inform the shareholders that he then believed the media credits to be, at a minimum, overvalued by nearly $9 million, and at
worst, completely worthless and needing to be written off entirely.
Baldwin also failed to inform the shareholders that he believed the company most likely would need to restate its financial statements as a result of the overvaluation of the media credits.
36. Bordynuik was present at JBI’s Annual General Meeting and was aware, both before and after, of the representations Baldwin made about the value of the media credits. At the time Bordynuik also was aware that the media credits were significantly overvalued in JBI’s financials and that the company likely would have to restate as a result.
At the time of JBI’s Annual General Meeting, Baldwin and Bordynuik both were aware that JBI was still soliciting
investors for one of the PIPES that ultimately raised approximately $8.4 million during the
period of overstatement.
http://www.sec.gov/litigation/complaints/2012/comp22220.pdf
Nuttin but the juicy truth!
1. He should have stopped earlier. He had me at John Bordynuik: Revolutionary Company Revolutionary Company Or Can Of Worms? Is a legitimate question, and one that every potential shareholder needs to ask before purchasing shares.
[/color]
2. Notice he doesn't focus on JBII....he focuses on his hate for JB. Negative, He's just keeping it real, and coloring it with known facts. In his own words on why he wrote the article:
"I posted that article for a couple of reasons. The first was big and I suspect it caused the bulk of the drop today and that was that most of the public didn't have any direct link to the SEC complaint...only to Mr. Bordynuik's press release downplaying it to "legacy accounting issues that have since been corrected." The SEC has significant credibility and having that complaint easily available for people to access and read certainly sheds light on Mr. Bordynuik.
The second reason is that Mr. Bordynuik's background with JBI isn't easily available either. Most people don't see time just slip by and that article summarized what happened so far. I spent way too much of my time trying to warn people about this stock and that article hits some new people. I understand that most will still relish the chance to lose their money but maybe a few people didn't know what they were getting into and will be better off for knowing. I'll probably post a lot less from now on--I feel now most people at least had the chance to think about what's going on and that's all I ever asked."
3. It's not a 'crude oil equivalent'. It's SPEC FUEL. i.e. Diesel, Gasoline, and Heating Oil.: plastic2oil.com/site/fuel-specs
This has been VERIFIED to the nth Degree by I forget how many independent agencies.
Your taking it out of context, as usual. What he said exactly was:[i]"A little background; JBI is a development stage company which claims to have found the recipe for an inexpensive catalyst which, when used in the process of heating waste plastic to high temperatures in the absence of oxygen, a process commonly known as pyrolysis, can purportedly produce a crude oil equivalent for a total cost of under $10 per barrel."
Investors who believe in Bordynuik should wonder if there is any rational basis for Bordynuik saying that he could produce a crude oil equivalent for under $10/bbl. If the problem is that he's just too optimistic to the point of being quixotic, maybe he was too optimistic when he said he could make crude oil (and at times even diesel) for a total cost of under $10/bbl ($0.25/gallon). Maybe you can provide a link to the proof of this 10 per barrel claim?
4. Refineries aren't purchasing it because it needs no refining. Sales contracts are in place to buy all JBII can produce. And it's being sold at $109/barrel, not $102.
[color=red]Another undeniable fact, straight out of juicy John's mouth.
[[[/color]i]b]"This wouldn't be the first time Bordynuik was deceptive. In April 2010, Bordynuik told shareholders that he had an offer from Somerset Refinery to purchase oil from his P2O process for the price of West Texas Intermediate crude oil minus $3 per barrel. The problem—Somerset Refinery had already been shut down for two months when he said it. Did he really get an offer but then didn't realize they were defunct and therefore this was just another 'honest' mistake? There's no way to verify since Somerset is shut down and its employees scattered to the wind. It's an odd coincidence that the only refinery ever mentioned by Bordynuik as having made an offer for JBI's oil just happened to go out of business. When Mr. Bordynuik previously said “refineries” (plural) that also should have indicated that there was more than one. No other refinery offering to buy Bordynuik's oil has surfaced since then."
5. He lists a 2+year old processor cost. The processor has CHANGED in 2 years. The processor has IMPROVED, and costs not $80K, but closer to $600K (depending on the fuel output they're made for).
As per CEO Mr. Bordynuik's public communication in 2009, each processor will cost around $80,000, will be able to produce 109 barrels of this crude oil equivalent per day and can be constructed so quickly that Mr. Bordynuik said the company's “plan is to launch 2,500 sites over the next few years Straight out of Honest John's mouth, so who's the real liar?
6. It's not 109 barrels a day. Latest stack test showed it running at a level that would produce 281 barrels a day.
Pure fiction, it only showed increased input rates, it's undetermined how much if any the output increased.
7. The plan was and still IS to make 2500+ of them...but not in a 'few years'. I believe the number was 12-20 years.....I forget exactly.
Negative, straight out of juicy John's pie hole.
And that's all from paragraph ONE.
Here's a few more:
8. There is no, and never was any stock promotion. Just a bunch of excited and loyal shareholders.
Right, just "Super excited" share holders....lol
9. WHAT? ' reluctant to provide any evidence whatsoever of commercial viability,'..........How about the fuel sales that have been, currently are, and will increase dramatically in the near future??
Saying it's viable doesn't make it viable, just like saying it's "audit proof" doesn't make it so.
10. I'm gettin tired .....almost every sentence contains inaccuracies and an obvious hate agenda.....so I'll end with this one: You left out so many undisputed facts, here's a few of my favorites.
Fact: "The publicly-traded stock of Nevada-incorporated John Bordynuik, Inc. (JBII.PK), also known as JBI, was cut in half after the Securities Exchange Commission filed suit last week alleging its founder, CEO and controlling shareholder, John Bordynuik, had committed securities fraud."
Facts: "Mr. Bordynuik acquired a company named Javaco to allow for rapid expansion even beyond U.S. borders and into Mexico and South America. Also in late 2009, Mr. Bordynuik wrote agreements and contracts to build 45 of his P2O sites in cooperation with a major developer in Florida, to build shipboard processors which would clean up the Pacific garbage patch as well as process plastic waste generated on islands, and to set up three joint ventures with other parties to build P2O sites in Ohio and Florida."
Fact: "on February 12, Bordynuik put out nineteen press releases in a single day"
Facts: "Under the least conservative method, United States generally accepted accounting principles (US GAAP) accounting would require those media credit assets be booked at cost, which in JBI's case would have been the value of the one million shares given in exchange, or $1,000,000. Even if Mr. Bordynuik didn't understand GAAP accounting, he would at least have understood that if the company paid $1,000,000 for an asset in an arm's length transaction, that the market value of that asset probably wasn't really $10 million. Mr. Bordynuik made it appear that JBI was given $9 million in extra value free of charge. In doing so, he made the entire company appear much more valuable--those media credits made up the vast bulk of the company's book value. The day prior to acquiring the media credits the company had no assets of which to speak. It's unlikely that Bordynuik would have been confused by this accounting and if he was, he could have sought council, especially in light of the large amount involved."
Facts:[/b] "The SEC's investigation further into the matter showed that Bordynuik understood very well that he was improperly booking the media credits. When Bordynuk's business consultant, a CPA, told Bordynuik the media credits should be booked at cost and voiced concern about booking them at the inflated $10 million face value, Bordynuik responded by saying it was “audit proof,” a clear indication that Bordynuik understood it was wrong to book the media credits at $10 million but felt it wouldn't be caught. To another business consultant who was preparing JBI's financials, Mr. Bordynuik said, “please get the pro formas as juicy as you can so I can acquire a chemical company for less,” an indication that Mr. Bordynuik wanted to inflate the perception of the company's size"
Facts: "For auditing the financial statements, Bordynuik settled on Gately and Associates, an audit firm which made the Public Company Accounting Oversight Board's (PCAOB) short list of 'naughty' accounting firms. When the PCAOB notified Gately and Associates of Gately and Associates' unsatisfactory controls and demanded corrective action, it appears Gately and Associates simply ignored the PCAOB, leading to their inclusion on that list. Further, when Bordynuik learned that the auditor was arrested for violating his probation, Felony DUI and possession of marijuana, Bordynuik wanted to keep him for the audits anyway, even paying for the auditor's criminal trial. It certainly looks as though Bordynuik may have been opinion shopping. Either way it worked and both Gately and Associates and Bordynuik signed off on the 2009 10K annual report with the egregious over-valuation of the media credits."
Facts: "In other deception, in 2009, Bordynuik put out a press release saying the company “Files Patent Application for Plastic2Oil Technology.” A year later in the SEC filings, Bordynuik admitted that no patent protection was ever sought. If the purpose of that deceptive press release wasn't merely to pump the stock, what was it? What prompted that press release if nothing related to patents was actually happening?"
Facts:"The unexplained delays are also continuous. In April 2010, Bordynuik announced that the first P2O processor was ready for production. That was already almost a year after he ordered the off-the-shelf processor from a Chinese company named Donghe in mid 2009 which merely had to be assembled. That April, Bordynuik made it clear to shareholders that the only step left to commercial operations was getting a simple permit from the New York Department of Environmental Conservation (NYDEC) to allow him to burn the off-gasses produced as a byproduct of the P2O pyrolysis process. In June, 2010, during the conference call in response to a question, he reiterated, “As soon as we obtain the air permit we will begin running the processor in full commercial production.” Nine months later (no explanation for the lengthy time needed) he finally filled out the ten-page permit application and the NYDEC approved it less than three weeks later. Bordynuik then put out a press release announcing that commercial operations had commenced."
'The response from Mr. Stakel (of RockTenn RKD:NYSE) said he didn't know any John Bordynuik.'
Fact:"For some reason, IHub's posters seem to be focusing on my e-mail with Mr. Stakel. I've e-mailed Mr. Stakel a few times now but, unfortunately, he hasn't been especially helpful. If Mr. Stakel was confused, it wasn't my intent--I genuinely tried to be as clear and succinct as possible. When I got the e-mail from him saying he didn't know Mr. Bordynuik, I immediately sent an e-mail back, but his answer five days later didn't shed any more light.
The conclusion I drew and published in the article was from the e-mail exchange but anyone is free to read whatever into the exchange. Order reversed to be chronological and headings partially removed: "
Sent: Wednesday, December 21, 2011 7:40 PM
To: John Stakel
Subject: JBI's plastic2oil plant at RockTenn
Mr. Stakel,
Can you tell me whether or not Mr. Bordynuik of John Bordynuik, Inc. has broken ground at a RockTenn facility to start building one of his Plastic2Oil plants?
Thank you.
- Kurt
--------------------------------------------------------------------------------
Subject: RE: JBI's plastic2oil plant at RockTenn
Date: Thu, 22 Dec 2011 12:18:03 +0000
Mr. Feierabend,
As I do not know Mr. Bordynuik or his firm, you will have to ask him.
John Stakel
--------------------------------------------------------------------------------
Sent: Thursday, December 22, 2011 11:26 AM
To: John Stakel
Subject: RE: JBI's plastic2oil plant at RockTen
Thanks.
John Bordynuik, Inc, (JBI) was the company which, five months ago, signed a ten-year revenue sharing agreement with RockTenn to process RockTenn's waste plastic. You were the one who signed that agreement with Mr. Bordynuik so I thought Mr. Bordynuik might have kept you in the loop.
- Kurt
--------------------------------------------------------------------------------
John Stakel 12/27/11
To Kurt Feierabend
Per my original email, please check with him for any updated information.
What's the status on the construction of the new building, have you seen a pad,frame, any progress? I believe this was supposed to be completed in the 4th quarter.
"But I will keep ALL,informed of what I can see, with no embellishment."
It looks like a bunch of facts to me. Surely, you wouldn't mind listing all the "many wrong things"?
I made it simple and attached it for you
"Also there are MANY WRONG things in that blog article"
John Bordynuik: Revolutionary Company Or Can Of Worms?
January 12, 2012
http://seekingalpha.com/article/319080-john-bordynuik-revolutionary-company-or-can-of-worms?source=yahoo
The publicly-traded stock of Nevada-incorporated John Bordynuik, Inc. (JBII.PK), also known as JBI, was cut in half after the Securities Exchange Commission filed suit last week alleging its founder, CEO and controlling shareholder, John Bordynuik, had committed securities fraud. The details of the complaint can be found published on the SEC's website.
A little background; JBI is a development stage company which claims to have found the recipe for an inexpensive catalyst which, when used in the process of heating waste plastic to high temperatures in the absence of oxygen, a process commonly known as pyrolysis, can purportedly produce a crude oil equivalent for a total cost of under $10 per barrel. The company named this process “Plastic2Oil” or “P2O.” The company further claims that refineries have offered to purchase the oil product for just a few dollars under the price of West Texas Intermediate crude oil, a price which currently sits at $102 per barrel. As per CEO Mr. Bordynuik's public communication in 2009, each processor will cost around $80,000, will be able to produce 109 barrels of this crude oil equivalent per day and can be constructed so quickly that Mr. Bordynuik said the company's “plan is to launch 2,500 sites over the next few years."
Lofty claims to be sure. A piece of equipment which, with the aid of a special catalyst, could pay for itself in only eight days while eliminating garbage from the environment and where 2,500 sites would gross nearly nine billion dollars per year. In 2009, in anticipation of what Mr. Bordynuik termed a P2O “land rush” of his plans to build all of these plastic-to-oil sites, Mr. Bordynuik acquired a company named Javaco to allow for rapid expansion even beyond U.S. borders and into Mexico and South America. Also in late 2009, Mr. Bordynuik wrote agreements and contracts to build 45 of his P2O sites in cooperation with a major developer in Florida, to build shipboard processors which would clean up the Pacific garbage patch as well as process plastic waste generated on islands, and to set up three joint ventures with other parties to build P2O sites in Ohio and Florida.
Investors loved the story and in early 2010, JBI's stock jumped from around $1.00 to over $7.00 per share almost overnight! It didn't hurt that on February 12, Bordynuik put out nineteen press releases in a single day and that a number of stock promotion sites were also working to raise awareness of the company. Even after recent the SEC suit, JBI's market cap sits at a hefty $100 million—generous for most startup companies, let alone one which is still firmly entrenched in a research and development stage.
However, the SEC's suit alleging fraud isn't about anything related to these fantastic claims of turning plastic waste into crude oil for under $10/bbl. In fact, since the fabled catalyst is secret and so far Bordynuik has been reluctant to provide any evidence whatsoever of commercial viability, it would be extremely difficult for the SEC to prove that his amazing claims about the capabilities of his catalyst are also fraudulent. If the cow never tries to jump, there's no way to prove that it can or can't actually jump over the moon.
The SEC's fraud suit against Mr. Bordynuik actually stems from media credits which Mr. Bordynuik purchased in 2009 from another company called Domark in exchange for a million shares of JBI's stock. JBI's stock had a market value of $1.00 per share, or $1 million total for one million shares. Those media credits were originally contracted by Domark with a company called Media4Equity which provides advertising in exchange for equity in fledgling public companies. The media credits had up to $10 million in face value which could theoretically be exchanged for advertising at Media4Equity's rates.
Under the least conservative method, United States generally accepted accounting principles (US GAAP) accounting would require those media credit assets be booked at cost, which in JBI's case would have been the value of the one million shares given in exchange, or $1,000,000. Even if Mr. Bordynuik didn't understand GAAP accounting, he would at least have understood that if the company paid $1,000,000 for an asset in an arm's length transaction, that the market value of that asset probably wasn't really $10 million. Mr. Bordynuik made it appear that JBI was given $9 million in extra value free of charge. In doing so, he made the entire company appear much more valuable--those media credits made up the vast bulk of the company's book value. The day prior to acquiring the media credits the company had no assets of which to speak. It's unlikely that Bordynuik would have been confused by this accounting and if he was, he could have sought council, especially in light of the large amount involved.
The SEC's investigation further into the matter showed that Bordynuik understood very well that he was improperly booking the media credits. When Bordynuk's business consultant, a CPA, told Bordynuik the media credits should be booked at cost and voiced concern about booking them at the inflated $10 million face value, Bordynuik responded by saying it was “audit proof,” a clear indication that Bordynuik understood it was wrong to book the media credits at $10 million but felt it wouldn't be caught. To another business consultant who was preparing JBI's financials, Mr. Bordynuik said, “please get the pro formas as juicy as you can so I can acquire a chemical company for less,” an indication that Mr. Bordynuik wanted to inflate the perception of the company's size.
On the same day as acquiring the media credits, August 24th, 2009, Bordynuik also acquired a company named Javaco, also from Domark, for $150,000 and 2.5 million shares of JBI stock. Javaco was in the business of selling used cable equipment in Mexico and South America but Bordynuik's stated purpose was that Javaco would allow for rapid P2O expansion into Mexico and beyond—a statement which made little sense for a company supposedly trying to commercialize a revolutionary catalyst for pyrolysis but which hadn't even built one commercial plant anywhere. A month later, Bordynuik acquired a Florida company called Pak-it, LLC for $4.6 million in stock and notes. Pak-it LLC had a subsidiary named Dickler Chemical Laboratories which was in the business of manufacturing and selling industrial cleaning products. Neither of the Javaco or Pak-it acquisitions made much sense in light of trying to commercialize P2O and together their operations generate net losses, but they certainly made JBI look bigger. For a company which had no assets a couple of months earlier, that was significant.
After purchasing the media credits, it appears that Bordynuik then took steps to ensure the true valuation of the media credits stayed hidden. For auditing the financial statements, Bordynuik settled on Gately and Associates, an audit firm which made the Public Company Accounting Oversight Board's (PCAOB) short list of 'naughty' accounting firms. When the PCAOB notified Gately and Associates of Gately and Associates' unsatisfactory controls and demanded corrective action, it appears Gately and Associates simply ignored the PCAOB, leading to their inclusion on that list. Further, when Bordynuik learned that the auditor was arrested for violating his probation, Felony DUI and possession of marijuana, Bordynuik wanted to keep him for the audits anyway, even paying for the auditor's criminal trial. It certainly looks as though Bordynuik may have been opinion shopping. Either way it worked and both Gately and Associates and Bordynuik signed off on the 2009 10K annual report with the egregious over-valuation of the media credits.
This isn't the first time I saw a penny stock try to bolster its balance sheet using underhanded means. There was a company called Magnum d'Or, where a controlling stake was purchased by Chad Austin Curtis (infamous for his promotion activities in the Sulja Bros scam). Magnum d'Or, under Curtis' control, claimed to have a revolutionary catalyst which could transform old used tires back into re-usable rubber. Magnum d'Or then purchased a large, mostly filled tire dump in Colorado, and then listed the old tires on their balance sheet as an asset worth over $7 million! After all, the tires were now 'inventory', right? This deception appeared instrumental in getting additional financing for Magnum d'Or. But I digress.
JBI's many proponents will be quick to say that booking the media credits at an inflated value may have been only a mistake made since Bordynuik was a naïve CEO and will point out that whether mistake or fraud in accounting, that doesn't automatically mean that Bordynuik's claims about a fantastic catalyst are also fabricated. However, the SEC's investigation does appear to strongly point to deception by the controlling shareholder and CEO. If Bordynuik went through all those steps to mislead investors about the media credits, wouldn't it be possible that he's also lying about having an almost magical catalyst which could make the normally uneconomical process of pyrolysis not only profitable, but profitable to the tune of having amazing 90% gross margins? Bordynuik is the controlling shareholder which means he controls the board of directors he himself picked and every aspect of JBI, including how much he pays himself out of invested funds. Absolute integrity should be a requirement for any investor looking to invest—an ingredient which Bordynuik appears to be missing if the SEC's complaint is to be believed.
This wouldn't be the first time Bordynuik was deceptive. In April 2010, Bordynuik told shareholders that he had an offer from Somerset Refinery to purchase oil from his P2O process for the price of West Texas Intermediate crude oil minus $3 per barrel. The problem—Somerset Refinery had already been shut down for two months when he said it. Did he really get an offer but then didn't realize they were defunct and therefore this was just another 'honest' mistake? There's no way to verify since Somerset is shut down and its employees scattered to the wind. It's an odd coincidence that the only refinery ever mentioned by Bordynuik as having made an offer for JBI's oil just happened to go out of business. When Mr. Bordynuik previously said “refineries” (plural) that also should have indicated that there was more than one. No other refinery offering to buy Bordynuik's oil has surfaced since then.
In other deception, in 2009, Bordynuik put out a press release saying the company “Files Patent Application for Plastic2Oil Technology.” A year later in the SEC filings, Bordynuik admitted that no patent protection was ever sought. If the purpose of that deceptive press release wasn't merely to pump the stock, what was it? What prompted that press release if nothing related to patents was actually happening?
Since inception, the story of JBI as told by Bordynuik has been very inconsistent and often raised even more eventual questions. For example, in 2009 when Bordynuik put out press releases touting deals to build 45 P2O sites in Florida with Sousa Development, shipboard P2O sites with Heddle Marine, three other joint ventures to build P2O sites in Ohio and Florida, agreements to sell naphtha and an agreement to sell pyrolysis-derived fuels to Oxy Vinyls, each and every one of those deals vanished and were never heard from again. No excuse from Bordynuik was ever given why none ever came to fruition. Were the press releases just baseless and put out to make the company look “juicy” or did Bordynuik have some reasonable and rational basis for believing they would come to fruition? Since virtually every deal ever announced by Bordynuik fell apart, including Bordynuik's previous quarterly habit saying that he expected commercal production within one quarter since Q1 2010 and then resetting in every next quarter to say it's still one quarter away, it seems probable that Bordynuik doesn't have much of any reasonable basis for many of his statements to shareholders. Investors who believe in Bordynuik should wonder if there is any rational basis for Bordynuik saying that he could produce a crude oil equivalent for under $10/bbl. If the problem is that he's just too optimistic to the point of being quixotic, maybe he was too optimistic when he said he could make crude oil (and at times even diesel) for a total cost of under $10/bbl ($0.25/gallon).
The unexplained delays are also continuous. In April 2010, Bordynuik announced that the first P2O processor was ready for production. That was already almost a year after he ordered the off-the-shelf processor from a Chinese company named Donghe in mid 2009 which merely had to be assembled. That April, Bordynuik made it clear to shareholders that the only step left to commercial operations was getting a simple permit from the New York Department of Environmental Conservation (NYDEC) to allow him to burn the off-gasses produced as a byproduct of the P2O pyrolysis process. In June, 2010, during the conference call in response to a question, he reiterated, “As soon as we obtain the air permit we will begin running the processor in full commercial production.” Nine months later (no explanation for the lengthy time needed) he finally filled out the ten-page permit application and the NYDEC approved it less than three weeks later. Bordynuik then put out a press release announcing that commercial operations had commenced.
But commercial operations hadn't commenced. From the various message boards dedicated to following the stock, it was clear that shareholders believed that the processor was finally in full commercial operation and why shouldn't they believe that? Bordynuik gave every indication that it would be happening and gave no indication that he hadn't actually started. It was only five months later when Bordynuik didn't report the expected revenues in the first quarterly report that there was a potential clue that the promised full commercial production wasn't happening. By that time Bordynuik released a few more press releases touting deals and that may have distracted shareholders from the glaring inconsistency in his story line. As of today, over a year even after that announcement of commercial operations, there's still no indication that the first processor has been put into productive service. Delays and plot twists abound.
Bordynuik does, however, list 'P2O' sales to a company called Coco Asphalt. However, in the filings, Bordynuik leaves it very ambiguous as to whether the P2O sales refers to products from his P2O process, or from the “P2O division.” JBI's P2O division also houses a previously defunct “blending facility” purchased by JBI from a friend of Bordynuik's family. Blending businesses routinely obtain third-party fuel, blend in additives and then deliver that fuel. It seems quite possible the “petroleum distillate” was purchased and resold without any ties to the P2O process itself. Bordynuik himself provides no clarification on this important and material subject.
Looking at JBI's last 10Q which Bordynuik filed with the SEC in November, Bordynuik shows the P2O division as having a high gross margin as a percent of sales. However the P2O division cost of sales he reported for the nine-month period is also oddly less than what he reported for the total six month period in the prior quarter. There was no explanation given for this discrepancy. It's clear that Bordynuik, at a minimum, changed the accounting for the cost of sales and those changes certainly made the income statement look more “juicy” but it's not altogether clear that those P2O costs of sales accurately reflect JBI's P2O operations, especially since the total P2O cost of sales is even less than the lease of a recycling facility he leased just a year earlier and which is housed under the P2O division umbrella. Along with a few math errors in the 3Q statement, it's likely the 2011 third quarterly report will have to be amended or restated at some point.
In the past six months, Bordynuik also struck three new deals. One was with major paperboard company Rock-Tenn to build P2O sites on Rock-Tenn's property in order to process Rock-Tenn's plastic-containing waste. It was a no-risk, no obligation deal for Rock-Tenn but the press release Bordynuik put out shot JBI's stock up by 50%. I recently e-mailed John Stakel at Rock-Tenn, who signed the agreement with Bordynuik, and asked if he knew how Bordynuik was progressing. The response from Mr. Stakel said he didn't know any John Bordynuik. Apparently there wasn't much progress on the deal with Rock-Tenn in the past five months if Mr. Stakel simply forgot.
Bordynuik also struck a deal with Indigo Energy and another deal with XTR Energy just last month. I wasn't able to get a response from Indigo but the CEO of XTR Energy did return my call. XTR's CEO indicated that the agreement was for transportation fuels meeting Canada's specs and was told by Bordynuik that Bordynuik expected to have those available by the second quarter of 2012. An expectation of the second quarter represents a new delay which Bordynuik never mentioned to shareholders, shareholders who undoubtedly believed the first processor was already available to produce at the time of the announcement. In a recent update, Bordynuik said JBI would purchase third party fuels to make up any difference between what JBI could provide and what XTR Energy needed. An unusual 'strategy' to be sure.
To date it has been almost three years since Bordynuik purchased controlling interest in the shell stock which he renamed John Bordynuik, Inc. In addition to nearly three years, the reported accumulated deficit indicates Bordynuik burned through $29 million in his stated quest to build P2O processors costing only $80,000 to $200,000 each. So far out of the 2,500 sites he said he planned to have built a “few years” out from 2009, he has built one and that one currently doesn't appear to be anywhere close to actually producing commercially. On January 6th, 2012, Bordynuik filed with the SEC indicating that over the past week, he was able to sell additional stock and warrants for another $2.8 million. Bordynuik has given no guidance for how much additional investment he expects to need before he expects to put even one processor in operation.
I've watched a number of stock scams unfold and often they follow the same general theme. They usually claim to have a revolutionary technology with a story which sounds almost plausible, won't provide any credible evidence to support their claims, announce deals which sound great but which eventually go nowhere, and they hate skeptics with a passion. Just over a year ago, Bordynuik even had his lawyer send me a cease and desist letter just to try to get me to stop posting my opinions about JBI on a stock message board. Prior to the letter, Bordynuik had opportunity to talk to me via e-mail as I sent him courteous e-mails asking for clarification on some of his communication to shareholders. Bordynuik ignored every e-mail I sent.
Stock scams often are extremely successful in getting associations with credible people and companies. They often get those associations by offering no-risk deals or providing other incentives in return for lip service or sham agreements which the scam company has no intention of filling. SEC-litigated fraud company US Sustainable Energy, which also claimed to have a secret catalyst which could make pyrolysis wildly profitable, was able to get the president of the Dominican Republic to publicly say positive words about that company. Green Rubber, a company associated with scam company Magnum d'Or, was able to get former President Bill Clinton to talk up Green Rubber. It's unclear whether or not Mr. Clinton ever actually received his $100,000 to $200,000 speaking fee for that engagement. In this case Green Rubber was also able to get actual investment from 'Die Hard' actor Bruce Willis. I'm certain Mr. Willis doesn't know the entire story but by now I'm guessing he at least suspects the nearly one million dollars he had invested won't pan out. JBI's Bordynuik was also able to get lip service from former New York state senator Thompson. My guess is that the $5,000 campaign contribution didn't hurt Bordynuik's chances. I spoke to Mr. Thompson at length about JBI and about Bordynuik but Mr. Thompson didn't want to go on record so I'm respecting his wishes.
My personal assessment is that securities fraud, occurring most often in penny stocks, is absolutely rampant and the SEC is doing what they can to have an impact. The SEC is effective but they can't do everything. Investors need to protect themselves and understand that fraud does exist. Investors shouldn't give some person free rein with their hard-earned money just because that person purchased controlling interest in a publicly-traded shell stock for a few tens of thousands of dollars. Investors should understand that if they run across a penny stock promising a too-good-to-be-true revolutionary technology and if they additionally decide to ignore the associated adage, they should at least take a step back from their excitement and try to evaluate their investment objectively. If one act of deception finds its way to the surface, you can bet that the company didn't intend the public to know of the deception and that probably means the act of deception is only the very tip of the iceberg. If unexplained or inadequately explained delays start happening, it's time to pay attention. These types of stories play out over and over in penny stocks and the stock message boards are filled with investors who firmly believe that their particular scam company is the 'real deal.' The operators of these scams try to keep shareholders chasing a carrot around the calendar while selling shares as long as they can. 'Caveat Emptor' should always be the mantra when investing, but should be especially when dealing with penny stocks.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
How long will the SEC let the shareholders sell before halting the stock?
The smoking gun!!
34. Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010,
Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and
audit firms consulted about perceived problems associated with the 10-K filing. Baldwin himself
acknowledged that by at least this time he became aware that GAAP required the media credits
to be booked at cost, rather than the valuation used, and approved by him, for the Form 10-K
Case 1:12-cv-10012 Document 1 Filed 01/04/12 Page 15 of 2816
filing. By this time Baldwin also reviewed information relating to press articles and other media
obtained by JBI that were charged against the media credits and knew that the media credits had
little to no real value. As a result, Baldwin knew, prior to JBI’s Annual General Meeting
(“AGM”) on April 24, 2010, that listing the media credits at $9.997 million was, at the very
least, a substantial overvaluation and would have to be restated.
Yet they didn't disclose, they just continued to lie!
Baldwinn already admitted he knew that the credits were close to worthless, and instead of finally being honest they continued to sell shares.
34. Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010,
Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and
audit firms consulted about perceived problems associated with the 10-K filing. Baldwin himself
acknowledged that by at least this time he became aware that GAAP required the media credits
to be booked at cost, rather than the valuation used, and approved by him, for the Form 10-K
Case 1:12-cv-10012 Document 1 Filed 01/04/12 Page 15 of 2816
filing. By this time Baldwin also reviewed information relating to press articles and other media
obtained by JBI that were charged against the media credits and knew that the media credits had
little to no real value. As a result, Baldwin knew, prior to JBI’s Annual General Meeting
(“AGM”) on April 24, 2010, that listing the media credits at $9.997 million was, at the very
least, a substantial overvaluation and would have to be restated.
They have no integrity, and all the shareholders have right now is the word of a known liar that's being charged with fraud.
Who's going to believe them now?
How are they ever going to be able to buy fuel with no money and resell it under the guise of P2O output?
Game over.
Yeah, I'm sure they want to be affiliated with men who have been charged with fraud.
Senator Timothy M. Kennedy (D-58th District)
Senator Mark Grisanti (R-60th District)
They also said the media credits were still worth 10 million at the AGM knowing damn well they were worthless, all so they could sell more stock.
They have no integrity, and all you have is the word of a known lier that's being charged with fraud.
I think the SEC rightfully wants their heads!
34. Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010,
Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and
audit firms consulted about perceived problems associated with the 10-K filing. Baldwin himself
acknowledged that by at least this time he became aware that GAAP required the media credits
to be booked at cost, rather than the valuation used, and approved by him, for the Form 10-K
Case 1:12-cv-10012 Document 1 Filed 01/04/12 Page 15 of 2816
filing. By this time Baldwin also reviewed information relating to press articles and other media
obtained by JBI that were charged against the media credits and knew that the media credits had
little to no real value. As a result, Baldwin knew, prior to JBI’s Annual General Meeting
(“AGM”) on April 24, 2010, that listing the media credits at $9.997 million was, at the very
least, a substantial overvaluation and would have to be restated.
35. Despite this understanding Baldwin made a presentation at JBI’s Annual General
Meeting, attended by JBI shareholders, that misrepresented JBI’s financial position. Baldwin
failed to inform the shareholders that the media credits were erroneously booked and would have
to be written down significantly and potentially in their entirety. Instead, Baldwin made
misrepresentations about the media credits being a current asset at a nearly $10 million valuation that would not be on the balance sheet at the same time the next year because they would need to
be expensed. In making these misrepresentations Baldwin failed to inform the shareholders that
he then believed the media credits to be, at a minimum, overvalued by nearly $9 million, and at
worst, completely worthless and needing to be written off entirely. Baldwin also failed to inform
the shareholders that he believed the company most likely would need to restate its financial
statements as a result of the overvaluation of the media credits.
36. Bordynuik was present at JBI’s Annual General Meeting and was aware, both
before and after, of the representations Baldwin made about the value of the media credits. At
the time Bordynuik also was aware that the media credits were significantly overvalued in JBI’s
financials and that the company likely would have to restate as a result. At the time of JBI’s
Annual General Meeting, Baldwin and Bordynuik both were aware that JBI was still soliciting
investors for one of the PIPES that ultimately raised approximately $8.4 million during the
period of overstatement.
They both knew before the AGM that the credits were worthless. Yet,they continued selling shares via a new private offering.
SEC Form D:
http://www.sec.gov/Archives/edgar/data/1381105/000121390010001807/xslFormDX01/primary_doc.xml
X New Notice Date of First Sale 2010-04-15
Total Offering Amount $4,000,000 USD
Total Amount Sold $1,330,316 USD
Total Remaining to be Sold $2,669,684 USD
On May 20, 2010, JBI, Inc., (the “Company”) consummated a confidential private placement (the “Private Offering”) with certain accredited investors for the issuance and sale of 488,779 shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) at per share price of $4.00 for aggregate offering proceeds of $1,955,116.
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002141/f8k052010_jbi.htm
Then on May 21st 2010 right after ending the PIPE offering, they announced what they knew all along that the credits were worth nada!
They let everyone know that via 8K that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon due to questions regarding: 1) the accounting treatment and related disclosures of two acquisitions which were completed during 2009 and 2) the valuation of media credits acquired by the Company during 2009 through the issuance of common stock. The Company’s former independent registered public accounting firm Gately and Associates, who was dismissed on May 13, 2010, was informed of the matters disclosed above.
I hope they both lose everything, like some of their shareholders probably did.
Bordynuik then instructed the consultant via internet instant messaging (a “Skype” message) to “please get the pro formas as juicy as you can so I can acquire a chemical company for less.” [/b]The reference to a chemical company related to Bordynuik’s intent to use JBI and its valuation as a vehicle for acquisitions. The reference to “pro formas” related to financial statements of JBI that would not necessarily conform with GAAP and that the company could use to communicate information about JBI to prospective investors, as opposed to being filed with the SEC. In response to Bordynuik’s instructions the consultant produced pro formas to Bordynuik that contained the media credits valued at nearly $10 million.
SEC Complaint
http://www.sec.gov/litigation/complaints/2012/comp22220.pdf
It was no mistake. He just thought he could get away with it, you know cause he's so damn smart.
Even Ray Charles while blind and dead could see it was no mistake!
Just the accounting mistake media credits -- dats it.
Nice find Jimmenknee!
Just proves you can't believe everything you read, that's two statements in the last hour alone spoken as gospel thats proven to be false and nothing but pure fiction.
"Now about the single PIPE raising -- the prospectus didn't mention a single word about media credits in it."
I count three, Oct,Jan and May.
"Here is a link to the 76 page private placement prospectus from 2009:
https://viewer.zoho.com/docs/qSdUf
Got a page number where media credits is mentioned?
No?
I didn't think so".
Here's to just keeping it real!
ummmm-- PDF page 27, marked page 19, para 2: "... In connection with the Agreement, Domark has also assigned $9,997,134 of media credits in print and radio to the Company in exchange for the issuance of 1,000,000 shares on the Company's common stock. ..."
Lmao
Let me spell it out for you slowly... On May 20, 2010 , JBI, Inc., (the “Company”) consummated a confidential private placement (the “Private Offering”) with certain accredited investors for the issuance and sale of 488,779 shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) at per share price of $4.00 for aggregate offering proceeds of $1,955,116.
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002141/f8k052010_jbi.htm
Then on May 21st 2010 they let everyone know that via 8K
that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon due to questions regarding: 1) the accounting treatment and related disclosures of two acquisitions which were completed during 2009 and 2) the valuation of media credits acquired by the Company during 2009 through the issuance of common stock. The Company’s former independent registered public accounting firm Gately and Associates, who was dismissed on May 13, 2010, was informed of the matters disclosed above.
Filing Date2010-05-21
Accepted2010-05-21 09:42:37
Documents1Period of Report2010-05-19
Filing Date Changed2010-05-21ItemsItem 4.02: Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On May 19, 2010 John Bordynuik, President and Chief Executive Officer and Director of JBI, Inc., (the “Company”), concluded that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002134/f8k051910_jbi.htm
He admits on May 19th he knew the financial statements could no longer be relied upon, yet they consumated a private placement a day later on the 20th.
I'm sure the SEC cares whether or not he disclosed that important information to the buyers of that last private placement.
What's worse is he also knew well before May 19th the Media Credits were'nt worth squat as the appraisal that was a year late was finally completed in March, months prior to the 8k announcing the finacials couldn't be relied upon.
He's in deep xxxx!!
So it didn't say not to rely upon the past filings, that's really interesting seeing all of the next day they reported via 8k that the past filings could no longer be relied upon. I don't know much, but don't you have to be honest in your prospectus?
Don't you think that was a material piece of information the poor saps buying the prospectus should have been made aware of?
Honest John can't say that he wasn't aware of it, when it was disclosed a day after consumating that placement.
Dead wrong, there was more than one pipe/private offering issued prior to alerting everyone that the past reports/lies could no longer be relied upon.
"Now about the single PIPE raising -- the prospectus didn't mention a single word about media credits in it."
First offering - 8K on 1/22/10 X New Notice Date of First Sale 2009-12-29 4 months after the Media Credits were purchased. This was a 7 million dollar offering in which 6.6 million had already been sold between 12/29/09 and 1/22/10
http://www.sec.gov/Archives/edgar/data/1381105/000121390010000257/xslFormDX01/primary_doc.xml
What's interesting is that On May 20, 2010 ( second offering), JBI, Inc., (the “Company”) consummated a confidential private placement (the “Private Offering”) with certain accredited investors for the issuance and sale of 488,779 shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) at per share price of $4.00 for aggregate offering proceeds of $1,955,116.
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002141/f8k052010_jbi.htm
Then on May 21st 2010 they let everyone know that via 8K
that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon due to questions regarding: 1) the accounting treatment and related disclosures of two acquisitions which were completed during 2009 and 2) the valuation of media credits acquired by the Company during 2009 through the issuance of common stock. The Company’s former independent registered public accounting firm Gately and Associates, who was dismissed on May 13, 2010, was informed of the matters disclosed above.
Filing Date2010-05-21
Accepted2010-05-21 09:42:37
Documents1Period of Report2010-05-19
Filing Date Changed2010-05-21ItemsItem 4.02: Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On May 19, 2010 John Bordynuik, President and Chief Executive Officer and Director of JBI, Inc., (the “Company”), concluded that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon
http://www.sec.gov/Archives/edgar/data/1381105/000121390010002134/f8k051910_jbi.htm
So on May 19th he knew the financial statements were lies and could no longer be relied upon, yet they consumated a private placement a day later on the 20th and there wasn't a word about the fraudulent Media credit valuation disclosed in the prospectus...I'm sure the SEC finds this very interesting as well!!
"the prospectus didn't mention a single word about media credits in it."
How much time is left is anyone's guess, trying to figure that out myself.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=70429149
Courtesy of Stoxrock:
"DID JB INVOKE THE 5TH AMENDMENT BEFORE THE SEC? Does anyone know?
A smart SEC attorney will tell you if you are guilty, DON'T TALK.
However, the Staff may take a negative inference by law from a failure to testify.
His lawyers, Rich Anslow and Greg Jaclin are very smart and would not let a guilty man hang himself.
Interesting.
what Regional office of the Commission conducted the investigation?
anyone know?
Did JB come into the US or did they go up there??
better Google Steadman, famous SEC case..
I'm betting that while no one factor under Steadman is controlling, you will see the following:
A lawsuit charging JB and the Shell Owners and possibly certain shareholders close to JB with violations of:
Section 17a of the 33 Act: fraud in the issuance of stock
Section 5 of the 33 Act and specifically with Sections 5a and 5c promulgated there under (sale of unregistered securities)
Section 10b of the 34 Act and Rule 10b-5 promulgated thereunder (FRAUD in connection with the purchase and sale of securities)
2a-11 of the 33 act with respect to certain shareholders close to JB (Statutory underwriters who had a "view to a distribution" of JBII stock without being registered with the SEC as a broker or dealer)
the lawsuit will seek:
disgorgement of ill-gotten gains
prejudgement interest
civil monetary penalties
thats the lawsuit
then there will be an OIP (Order Instituting Proceedings) seeking:
Officer and Director bars
Penny Stock Bars
THE US GOVERNMENT IS SAYING THESE GUYS ARE LIARS...
WHY DO THINK THEY HAVE CHANGED THEIR STRIPES????? "
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=70429149
I can't believe for a minute anyone (including the SEC) believes that Honest John didn't know the true value of the Media Credits, when he fraudulently listed them as a 10 million dollar asset.
John has no integrity and is nothing short of a crook....PERIOD!!
There were several pipes/equity issuances that were completed after fraudulently listing that 10 million dollar fake asset, which could ultimately prove to be the final nails in his coffin.
I think your spot on regarding the comma, and the xxxx is about to hit the fan!
Do you have any idea on what the time frame could be before the SEC charges him with fraud?
"here is an excerpt from the 8K:
Based on communications with the Enforcement staff, the Company believes that the proposed lawsuit relates to the Company’s subsequently restated financial statements for the third quarter of 2009, which were included in its Form 10-Q filed on November 16, 2009 and its financial statements for the year ended December 31, 2009, which were included in its 2009 Form 10-K filed on March 31, 2010. The restatement concerned the Company’s valuation of media credits, accounting for certain acquisitions, and equity issuances. Based on information obtained from the Enforcement staff, the Company believes that the staff may also recommend naming one or more current and former officers of the Company as defendants in the proposed lawsuit.
Notice the "comma" before equity issuances?
that comma isolates JB's printing of stock exclusively it doesn't invoke "accounting" for equity issuances
A lawsuit by the SEC always claims the defendants acted with "scienter" ( go look it up)
which means JB willfully misrepresented a material fact or failed to represent a material fact, which if made, in light of the circumstances under which it was made, would make what he did say not misleading
I suggest you also look up the federal definition of "willfullness"
so the actual Wells Notice is saying the SEC believes these guys acted FRAUDULENTLY WITH SCIENTER WITHIN A STEADMAN APPLICATION (THEY KNOWINGLY LIED)
there are 5 elements to Steadman, no one factor is controlling..
LAW CALL IS OVER: HE DONT HAVE A CHANCE"
investorshub.advfn.com/boards/read_msg.aspx?message_id=70436798
If he wanted to be clear he could have easily done so, the fact that he left it unclear speaks volumes. Unfortunately, that's his MO.
PaperProphet said it best:
"Mr. Bordynuik has his own dictionary.
"refining" isn't the traditional definition.
"fuel" isn't the traditional definition.
"is" actually means "isn't"
"commences" actually means "has not commenced"
"is filing patents" actually means "no patent protection has been sought"
"have an offer" actually means that there's a defunct entity where any alleged offer can't be verified.
"is building" means "is not currently being built"
"liquor" means an unprofitable liquid oil.
"diesel" means some alkanes with chains numbering in the teens have been found in the "liquor."
"paid to take plastic" means that JBI will take a plastic/cardboard/wire mix or mine plastic at their own expense.
"soon" means the next delay or plot twist hasn't been announced.
"
http://www.siliconinvestor.com/readmsg.aspx?msgid=27853794
He meant, like B80 or B(any other number) biodiesel, the Company will initially blend some portion of its fuel with refinery feedstock and additives to produce road transport fuels, right?